LESAKA TECHNOLOGIES INCLSAK
LESAKA TECHNOLOGIES INC Segments Disclosure
21. OPERATING SEGMENTS
Operating segments
The Company discloses segment information as reflected in the management information systems reports that its chief operating
decision maker (“CODM”) uses in making decisions and to report certain entity-wide disclosures about products and services, and the
countries in which the entity holds material assets or reports material revenues.
Change to internal reporting structure and recast of previously reported information
The Company currently has
three
Company’s Executive Chairman. During the second quarter of fiscal 2025, he changed the Company’s operating and internal reporting
structures to present a new segment, Enterprise, separately. The CODM has decided to analyze the Company’s operating performance
primarily based on these three operational lines, namely,
have higher revenues and have access to multiple service providers. Informal sector merchants, which are often sole proprietors and
usually have lower revenues compared with formal section merchants, operate in rural areas or in informal urban areas and do not
always have access to a full-suite of traditional banking products;
(ii) Consumer, which primarily focuses on individuals who have historically been excluded from traditional financial services
and to whom we offer transactional accounts (banking), insurance, lending (short-term loans), payments solutions (digital wallet) and
various value-added services; and
(iii) Enterprise, which comprises large-scale corporate and government organizations, including but not limited to banks, mobile
network operators (“MNOs”) and municipalities, and, through Recharger, landlords utilizing Recharger’s prepaid electricity metering
solution.
21. OPERATING SEGMENTS (continued)
Reallocation of certain activities among operating segments in Q2 2025
The change in our operating segments during the second quarter of fiscal 2025 included the separation of Enterprise out of
Merchant. The Company has also allocated the majority of Adumo’s operations to Merchant, with a smaller part of its operations
focusing on the provision of physical and digital prepaid and secure payout solutions for South African businesses with large individual
end-users being allocated to Consumer. Previously reported information has been recast.
The Merchant segment includes revenue generated from the sale of ADP (select prepaid solutions, supplier-enabled payments,
international money transfer and other) and card-acquiring services to informal sector merchants. It also includes activities related to
the provision of goods and services provided to corporate and other juristic entities. The Company earns fees from processing activities
performed (including card acquiring and the provision of a payment gateway services) for its customers, and rental and license fees
from the provision of point of sales (“POS”) hardware and software to the hospitality industry. The Company also provides cash
management and payment services to merchant customers through a digital vault which is located at the customer’s premises and
through which the Company is able to provide the services which generate processing fee revenue. From July 1, 2023, the segment
includes fees earned from transactions performed by customers utilizing its ATM infrastructure.
The Consumer segment includes activities related to the provision of financial services to customers, including a bank account,
loans and insurance products. The Company charges monthly administration fees for all bank accounts. Customers that have a bank
account managed by the Company are issued cards that can be utilized to withdraw funds at an ATM or to transact at a merchant POS.
The Company earns processing fees from transactions processed for these customers. The Company also earns fees on transactions
performed by other banks’ customers utilizing its ATM (until June 30, 2023) or POS. The Company provides short-term loans to
customers in South Africa for which it earns initiation and monthly service fees, and interest revenue from the second quarter of fiscal
2025. The Company writes life insurance contracts, primarily funeral-benefit policies, and policy holders pay the Company a monthly
insurance premium. The Company also earns fees from the provision of physical and digital prepaid and secure payout solutions for
South African businesses.
The Enterprise segment provides its business and government-related customers with transaction processing services that involve
the collection, transmittal and retrieval of transaction data. Through Recharger, Enterprise offers landlords access to Recharger’s
prepaid electricity metering solution through which Enterprise earns commission revenue from prepaid electricity voucher sales to
tenants recharging prepaid meters. This segment also includes sales of hardware and licenses to customers. Hardware includes the sale
of POS devices, SIM cards and other consumables which can occur on an ad hoc basis. Licenses include the right to use certain
technology developed by the Company.
The Company evaluates segment performance based on segment earnings before interest, tax, depreciation and amortization
(“EBITDA”), adjusted for items mentioned in the sentences below (“Segment Adjusted EBITDA”), the Company’s reportable
segments’ measure of profit or loss.
The Company obtained a general lending facility in February 2025, which has been partially used to fund a portion of its
Consumer lending during the four months ended June 30, 2025, and interest related to these borrowings have been allocated to
Consumer. The Company also included an intercompany interest expense in its Consumer Segment Adjusted EBITDA for the eight
months ended February 28, 2025.
The Company does not allocate once-off items, stock-based compensation charges, depreciation and amortization, impairment
of goodwill or other intangible assets, other items (including gains or losses on disposal of investments, fair value adjustments to
equity securities), interest income, certain interest expense, income tax expense or loss from equity-accounted investments to its
reportable segments. Group costs generally include: employee related costs in relation to employees specifically hired for group roles
and related directly to managing the US-listed entity; expenditures related to compliance with the Sarbanes-Oxley Act of 2002; non-
employee directors’ fees; legal fees; group and US-listed related audit fees; and directors and officer’s insurance premiums. Once-off
items represent non-recurring expense items, including costs related to acquisitions and transactions consummated or ultimately not
pursued. Unrealized (loss) gain for currency adjustments represents foreign currency mark-to-market adjustments on certain
intercompany accounts. Interest adjustment represents the intercompany interest expense included in the Consumer Segment Adjusted
EBITDA. The Stock-based compensation adjustments reflect stock-based compensation expense and are excluded from the calculation
of Segment Adjusted EBITDA and are therefore reported as reconciling items to reconcile the reportable segments’ Segment Adjusted
EBITDA to the Company’s loss before income tax expense.
Effective from fiscal 2025, all lease charges are allocated to the Company’s operating segments, whereas in fiscal 2024 the
Company presented certain lease charges on a separate line outside of its operating segments. Prior period information has been re-
presented to include the lease charges which were previously reported on a separate line in the Company’s Consumer and Merchant
(now Merchant, Enterprise and Consumer) operating segments.
21. OPERATING SEGMENTS (continued)
Reallocation of certain activities among operating segments in Q2 2025 (continued)
Our CODM does not review the components of segment selling, general and administration expenses and is presented with
reports which include revenue, net revenue (a non-GAAP measure) and segment adjusted EBITDA.
The table below presents the reconciliation of revenue from external customers to the reportable segment’s revenue, significant
expenditures, the Company’s reportable segment’s measure of profit or loss, and certain other segment information for the years ended
June 30, 2025, 2024 and 2023, respectively, is as follows:
Year ended June 30, 2025
Merchant
Consumer
Enterprise
Unallocated
Total
Revenue from external customers
$
524,250
$
96,008
$
39,443
$
-
$
659,701
Intersegment revenues
2,348
-
3,113
-
5,461
Segment revenue
526,598
96,008
42,556
-
665,162
Less segment-related expenses:
Cost of goods sold, IT processing, servicing and
support
425,787
35,603
32,549
-
493,939
Selling, general and administration
(1)(2)
64,616
36,456
8,720
-
109,792
Segment adjusted EBITDA
$
36,195
$
23,949
$
1,287
$
-
$
61,431
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
10,997
$
968
$
371
$
21,385
$
33,721
Expenditures for long-lived assets
$
18,117
$
1,500
$
1,482
$
-
$
21,099
Year ended June 30, 2024
Merchant
Consumer
Enterprise
Unallocated
Total
Revenue from external customers
$
456,069
$
69,211
$
38,942
$
-
$
564,222
Intersegment revenues
3,721
-
7,955
-
11,676
Segment revenue
459,790
69,211
46,897
-
575,898
Less segment-related expenses:
Cost of goods sold, IT processing, servicing and
support
393,618
23,165
37,424
-
454,207
Selling, general and administration
(1)(3)
37,002
33,367
6,542
-
76,911
Segment adjusted EBITDA
$
29,170
$
12,679
$
2,931
$
-
$
44,780
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
8,141
$
734
$
402
$
14,388
$
23,665
Expenditures for long-lived assets
$
11,202
$
1,317
$
146
$
-
$
12,665
21. OPERATING SEGMENTS (continued)
The table below presents the reconciliation of revenue from external customers to the reportable segment’s revenue, significant
expenditures, the Company’s reportable segment’s measure of profit or loss, and certain other segment information for the year ended
June 30, 2023, is as follows:
Year ended June 30, 2023
Merchant
Consumer
Enterprise
Unallocated
Total
Revenue from external customers
$
416,562
$
62,801
$
47,139
$
1,469
$
527,971
Intersegment revenues
-
-
3,317
-
3,317
Revenue not allocated to segment
-
-
-
(1,469)
(1,469)
Segment revenue
416,562
62,801
50,456
-
529,819
Less segment-related expenses:
Cost of goods sold, IT processing, servicing and
support
351,754
29,465
39,176
-
420,395
Selling, general and administration
(1)
35,800
31,661
8,024
-
75,485
Segment adjusted EBITDA
$
29,008
$
1,675
$
3,256
$
-
$
33,939
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
6,749
$
1,114
$
673
$
15,149
$
23,685
Expenditures for long-lived assets
$
12,812
$
3,170
$
174
$
-
$
16,156
(1) Selling, general and administration includes human capital-related expenses (including base salary and bonus), IT-related
expenses (including software licenses, hardware maintenance, hosting, and communication expenses), professional fees (including
audit, legal, consulting and other fees), lease and utilities expenses, the allowance for credit losses and other operating and support
expenses.
(2) Segment Adjusted EBITDA for the year ended June 30, 2025, includes retrenchment and reorganization costs for Merchant
of $
0.8
15.7
0.1
1.5
0.8
13.6
and
(3) Segment Adjusted EBITDA for the year ended June 30, 2024, includes retrenchment costs for Merchant of $
0.3
4.9
0.2
3.5
21. OPERATING SEGMENTS (continued)
The reconciliation of the reportable segments’ measures of profit or loss to loss before income taxes for the years ended June 30, 2025,
2024 and 2023, respectively, is as follows:
2025
2024
2023
Reportable segments measure of profit or loss
$
61,431
$
44,780
$
33,939
Operating loss: Group costs
(10,743)
(7,844)
(9,109)
Once-off costs
(17,826)
(1,853)
(1,922)
Interest adjustment
2,195
-
-
Unrealized (Loss) Gain for currency adjustments
(23)
83
(222)
Stock-based compensation charge adjustments
(9,550)
(7,911)
(7,309)
Depreciation and amortization
(33,721)
(23,665)
(23,685)
Loss on disposal of equity-accounted investment (Note 9)
(161)
-
(205)
Impairment loss
(18,863)
-
(7,039)
Reversal of allowance for doubtful EMI debt receivable (Note 9)
-
250
-
Change in fair value of equity securities (Note 3)
(59,828)
-
-
Interest income
2,596
2,294
1,853
Interest expense
(21,453)
(18,932)
(18,567)
Loss before income taxes
$
(105,946)
$
(12,798)
$
(32,266)
The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per
segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not
have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation
and segment asset allocation is therefore not presented.
Long-lived assets based on their geographic location as of June 30, 2025, 2024 and 2023, are presented in the table below:
Long-lived assets
2025
2024
2023
South Africa
$
392,098
$
286,700
$
300,104
India - Investment in MobiKwik (Note 9)
-
76,297
76,297
Rest of world
3,055
2,548
2,197
Total
$
395,153
$
365,545
$
378,598
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 29, 2025 | Showing above |
| 2024 | Sep 11, 2024 | |
| 2023 | Sep 12, 2023 | |
| 2022 | Sep 9, 2022 | |
| 2021 | Sep 13, 2021 | |
| 2020 | Sep 10, 2020 | |
| 2019 | Oct 25, 2019 | |
| 2018 | Sep 12, 2018 | |
| 2017 | Aug 24, 2017 | |
| 2016 | Aug 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.